The Azia-Invest Bank, a subsidiary of Uzbekistan’s National Bank for Foreign Economic Activity, plans to open a US$25m credit line to assist Russian distributors of GM Uzbekistan – an Uzbeki-based JV that includes participation by GM.
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The financing will be provided next year to distributors in Russia that are wholly owned by Uzavtoprom, the state-owned company said.
The credit line is intended to help distributors to weather the impact of the recent drop in car sales in Russia, Uzavtoprom said.
GM Uzbekistan’s sales in Russia fell 25% in October-November, according to Uzbek media. About 15,000 cars were returned to Uzbekistan in September-November because the were not selling in Russia.
GM Uzbekistan was set up earlier this year. GM holds 25% plus one share in the joint venture and has an option to increase its stake to 40%. Uzavtoprom holds the remaining 75%.
Earlier this year, GM Uzbekistan began building a new Nexia model, the Nexia-2 and recently added the Chevrolet Lacetti.
See also: UZBEKISTAN: GM starts production of Chevy Lacetti
